Bernard Durkan (Kildare North, Fine Gael)
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Question 329: To ask the Minister for Foreign Affairs the position in regard to discussions at EU level on the Cyprus issue; and if he will make a statement on the matter. [31224/07]

Dermot Ahern (Louth, Fianna Fail)
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The United Nations has the lead role in the search for a comprehensive settlement of the Cyprus problem. The Government fully supports the leadership of the UN Secretary General in this important work, and we welcome the ongoing efforts of the Secretary General's Special Representative to Cyprus, Mr. Michael Moeller, to bring the two sides together to seek progress toward a political settlement.

On 8 July 2006, the UN Under Secretary General for Political Affairs, Dr. Ibrahim Gambari, brokered an agreement between the President of the Republic of Cyprus, Mr. Tassos Papadopoulos, and Mr. Mehmet Ali Talat, representing the Turkish Cypriot community, on a set of principles, recognising that the status quo was unacceptable and that a comprehensive settlement was both desirable and possible. They agreed to begin immediately a two-track process involving discussions by committees of issues affecting the day-to-day life of the people and, concurrently, of substantive issues leading to a comprehensive settlement. However, these committees were not subsequently established, due to disagreements on their respective mandates and terms of reference. Following a hiatus, consultations at official level on these issues resumed at the end of January 2007, though so far without any breakthrough.

On 5 September, the Special Representative facilitated a meeting between President Papadopoulos and Mr. Talat, the first such encounter between the two leaders since last year. While regrettably no substantive progress was made on this occasion, we welcome the reopening of political dialogue which this meeting represents. Both sides have also recently sent submissions to the UN Secretary General, outlining new proposals to take the process forward. The Secretary General has not formally commented on these proposals as yet. We are encouraged that the two sides are continuing their contact through the UN, and remain hopeful that this dialogue may yet help to unblock the stalemate in the process.

Ireland will continue, through our Embassy in Nicosia and in contacts with the Embassies of Cyprus and Turkey in Dublin, to encourage both sides to renew their commitment to the negotiating process and the achievement of the objective of a bi-zonal, bi-communal federal State through an honourable, balanced and durable settlement protecting and guaranteeing the basic interests and aspirations of all.

At EU level, proposals have been brought forward by the Commission to encourage the economic development of the Turkish Cypriot community. At its meeting in January 2007, the Council of Ministers noted progress, in particular as regards the implementation of a financial aid regulation. The Council called for work to continue aimed at adopting a Regulation "on special conditions for trade with the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control". The Commission's direct trade proposal has subsequently been the subject of discussion at working group level, but consensus has not yet been found on a way forward.